Study predicts mobile ad gains

Spending may reach $7.6 billion by 2013

NEW YORK -- A dramatic increase in spending on mobile advertising is on the horizon, according to a report released this week by Juniper Research.

The prediction is based on the rapid advances in mobile technology and the growing use of mobile devices.

Juniper, which is based in Hampshire, U.K., suggested that total spending on mobile advertising will increase from $1.3 billion this year to more than $7.6 billion by 2013. The report also predicted that mobile search advertising, which represents more than 34% of total mobile spending, will reach $445 million and will increase to $2 billion-plus by 2013.

The report highlights the opportunity in mobile search advertising for marketers as consumers increasingly search for subject matter both on- an off-portal, with a significant shift to mobile search.

Additionally, the report suggested that the innovative technology of new mobile devices provides more applications and delivery mechanisms, providing an advertiser more ways to reach the consumer. "The mass adoption of 2.5G and 3G handsets, combined with the development of applications enabling targeted, instant measurement and frequency capping, means that we now have a situation where consumers can receive personalized advertising across a variety of rich media delivery channels," said Windsor Holden, principal analyst at Juniper Research.

Different delivery channels may include idle-screen, mobile TV campaigns, display advertising and SMS.

Juniper also predicted that the increase in the category will include the implementation of planned campaigns just for mobile devices.

The 162-page report is titled "Mobile Advertising: Delivery Channels, Strategies, and Forecasts 2008-2013." The research presents market projections for eight key global locations using tables, diagrams and charts. The report also incorporates a section focusing on key players in the mobile advertising value chain and provides recommendations for brands, advertising agencies, content providers and operators.